The purpose of this note is to point out that there is a computing error made in the derivation of the t value in Chen (2005). The erratum presents the correct expression of t and the ensuing changes in the results of Chen (2005)

Firms first choose their debt level, next form an RJV and choose R&D investment, and then choose output in Cornot competition. Through the use of debt, a firm commits an aggressive stance, a higher output level, and higher R&D investment, whereby the latter helps solve the free-riding problem...